Investors worldwide are already beginning to worry that what is transpiring at the moment is more than a simple correction. Markets worldwide have simply been colored in red across the board and across continents over the last 3 weeks now. Just recently, US stock markets reached the levels not seen since 2009. But now we are back below some seriously critical levels. Now we are no pessimists, but over the last 3 days we have reported that the stocks and stock indices are very vulnerable to further losses. We specifically made mention of the Dow and S&P indices. The Dow ended up dropping 0.98% yesterday and is now at 12695 while the S&P fell 1.11% to 1338.
It is important to note that it’s not just stocks and stock indices that are falling. Commodity prices are dropping fast as well. Generally, metals like Gold and Silver remain strong and even strengthen greatly when markets worldwide are in crisis. Although now is not a time of crisis, many analysts suspect that we are very close and as such, it would be expected that the price of Gold would increase but it hasn’t. It has dropped and is now trading near 1553 after dropping another 0.45% yesterday. Oil is now down to 94 after falling 0.57% and shows no signs of heading higher as we near “driving season” which generally pushes energy prices higher as people in the summer tend to have more time to spend on trips taken with cars. The fact that people are vacationing more also pushes up fuel prices for airlines, which creates more demand as well. However, none of these factors are in play and investors seem very reluctant to buy Oil at the moment, as though expecting the summer not to cause an increase in demand.
Specifically today, APPL stock seem most likely to provide strong SELL signals for binary options traders. Apple stock (APPL) is close to the 556 support level. If broken, it is hard to imagine the price of the stock not dropping further as this level signifies the top level of a gap created a few months ago and was never closed. In technical analysis, a gap in prices seen on a graph must be closed, eventually. It seems like today is the day for APPL stock to drop and binary options traders can focus on DOWN options because of this.
Yesterday we reported that GOOG too was in our focus and it still is. It has yet to break below the support which would also indicate that a head and shoulders pattern was on the charts. Read our article from yesterday to get more details about what you should do about this down-trend.